China Minsheng Banking Corp., Ltd. Class A · SSE:600016
China Minsheng Banking Corp., Ltd. Class A — H1 2010 Earnings Presentation
21 slides from China Minsheng Banking Corp., Ltd. Class A's earnings presentation, August 2010
Slide 1: China Minsheng Banking Corp., Ltd. 2010 Interim Results Announcement
Strictly confidential China Minsheng Banking Corp., Ltd. 2010 Interim Results Announcement IFRS August 2010
Slide 2: Disclaimer
C:\DPS NEW\Pres\PPT\PresPrint.pot Disclaimer This presentation contains forward-looking statements that involve risks and uncertainties. These statements are generally indicated by the use of forward- looking terminology such as believe, expect, anticipate, estimate, plan, project, target, may, will
Slide 3: Attending team
C:\DPS NEW\Pres\PPT\PresPrint.pot Attending team Hong Qi Director, President Zhao Pinzhang Vice President Mao Xiaofeng Vice President and Board Secretary 2
Slide 4: Second Great Leap with Focused Strategies
C:\DPS NEW\Pres\PPT\PresPrint.pot Second Great Leap with Focused Strategies Strategic objective — to become an internationally competitive and the best PRC commercial bank Clearly defined strategic positioning — a bank for private-owned enterprises, small and micro- enterprises and high-end customer
Slide 5: Business Overview
C:\DPS NEW\Pres\PPT\PresPrint.pot Business Overview In the first half of 2010, all businesses of our Bank experienced stable and healthy development and obtained good operating results 1 Revenue structure improved significantly and profitability kept rising ♦ Operating revenue and profit grew steadi
Slide 6: Agenda
C:\DPS NEW\Pres\PPT\PresPrint.pot Agenda 1 Financial Performance 2 Business Review 3 Outlook
Slide 7: Overview of Key Financials
C:\DPS NEW\Pres\PPT\PresPrint.pot Overview of Key Financials Key Income Statement data Growth rate Key items of Statement of (RMB million, except EPS) 1H2010 1H2009 (%) Financial Position (RMB Growth rate million) 30 Jun 2010 31 Dec2009 (%) Net interest income 21,165 13,950 ↑ 51.72 Gross Loans and a
Slide 8: Profitability
C:\DPS NEW\Pres\PPT\PresPrint.pot Profitability ROAE1 PPOP / Average total equity1 25% 19.28% 40% 20% 30.16% 30.17% 30% 27.12% 2 15% 13.30% 20% 10% 5% 10% 0% 0% 1H2009 1H2010 1H2009 1H2010 Source: Interim report Source: Interim report ROAA1 PPOP / Average total assets1 1.5% 2.0% 1.82% 1.17% 1.5% 1.2
Slide 9: Net Interest Income
C:\DPS NEW\Pres\PPT\PresPrint.pot Net Interest Income Significant year-on-year increase in net interest margin (NIM) for 1H2010 Net interest income Net interest margin1 (RMB million) 2% 51.7 4% 25,000 e= 21,165 s e= 49bps 2.92% rat Increa 20,000 th 3% 2.43% 13,950 G row 15,000 2% 10,000 1% 5,000 0 0
Slide 10: Non-interest Income
C:\DPS NEW\Pres\PPT\PresPrint.pot Non-interest Income Significant growth in net fee and commission income has further improved our revenue composition Growth in net fee and commission income Net fee and commission income composition (RMB million) (RMB million) 1% 100% 73 = 96.2 15 162 5,000 rate 4,5
Slide 11: Operating Efficiency
C:\DPS NEW\Pres\PPT\PresPrint.pot Operating Efficiency Contribution per branch/employee has continuously increased. While operating expenses have risen due to rapid business growth, institutional network expansion, as well as an increase in systems construction and personnel, our operating efficienc
Slide 12: Asset Quality
C:\DPS NEW\Pres\PPT\PresPrint.pot Asset Quality Implementation of our comprehensive risk control system is in full swing - sound operational performance as evidenced by declining NPL ratio and improving NPL coverage NPL outstanding balance and NPL ratio Credit cost (RMB million) 9,000 2% 0.8% 7,397
Slide 13: Capital Adequacy Ratio
C:\DPS NEW\Pres\PPT\PresPrint.pot Capital Adequacy Ratio Capital adequacy ratio Core capital adequacy ratio 10.83% 10.77% 11% 10% 8.92% 8.32% 10% 8% 9% 6% 8% 4% 31 Dec 2009 30 Jun 2010 31 Dec 2009 30 Jun 2010 Source: Interim report Source: Interim report RWA/Total assets Shareholders’ equity/Total a
Slide 14: Agenda
C:\DPS NEW\Pres\PPT\PresPrint.pot Agenda 1 Financial Performance 2 Business Review 3 Outlook 13
Slide 15: Fast growing "Shang Dai Tong"
C:\DPS NEW\Pres\PPT\PresPrint.pot Fast growing “Shang Dai Tong” The “Shang Dai Tong” loan business has driven the rapid growth of our retail loans Continuous business expansion and innovation Expanding business scale Establishment of 10 key branches in the “Shang Dai Tong” outstanding loans balance
Slide 16: Continue growing Credit Card Business and high-end customers
Continue growing Credit Card Business and high-end customers C:\DPS NEW\Pres\PPT\PresPrint.pot Minsheng continued its strategic focus on high-end customers and achieved a significant increase in the number of high net worth clients Credit cards issued (cumulative) Platinum, Diamond & Infinite1credit
Slide 17: Corporate Banking – Increasing scale and asset quality
C:\DPS NEW\Pres\PPT\PresPrint.pot Corporate Banking – Increasing scale and asset quality Continue refining our business, customer and revenue structures, in light of a changing business environment Corporate deposits and loans Outstanding balance of loans issued to private- (loans ex discounted bill
Slide 18: Steady growth in all SBU operations
C:\DPS NEW\Pres\PPT\PresPrint.pot Steady growth in all SBU operations All SBUs coped positively with the complex and evolving operating environment. We took the initiative to implement structural adjustments, strengthen risk prevention mechanisms, explore emerging market opportunities and advance tr
Slide 19: Corporate Banking – Specialty Business
C:\DPS NEW\Pres\PPT\PresPrint.pot Corporate Banking – Specialty Business Top China Banking Industry Achievement Award: Best Bank for Trade Finance Trade Finance Business ranked – Financial Times, UK Trade finance net non-interest income Volume of international dual factoring service (USD million) (R
Slide 20: Agenda
C:\DPS NEW\Pres\PPT\PresPrint.pot Agenda 1 Financial Performance 2 Business Review 3 Outlook
Slide 21: Outlook for 2H2010
C:\DPS NEW\Pres\PPT\PresPrint.pot Outlook for 2H2010 We will continue to seize market opportunities and achieve great leaps in business development to attain our strategic goals The outlook for the macro economy in the second half of the year remains uncertain, while the tone of monetary policy will
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